H-1B Visa: JD Vance Signals Tougher Scrutiny for Companies Laying Off US Workers

JD Vance, US Vice President, has indicated that corporations seeking H-1B visa workers will face more scrutiny after laying off American employees. In remarks delivered on Sunday, September 27, 2026, Vance stated that the government is exploring on measures to prevent firms from claiming a labour crisis after reducing employment in the United States. His remarks came just days after President Donald Trump announced additional penalties aimed at firms who lay off US workers while recruiting H-1B immigrants.

H-1B visa applications face closer scrutiny

Vance questioned how a corporation could say it is unable to locate personnel while having a history of massive layoffs. He cited a hypothetical firm who fired thousands of American employees but then recruited H-1B workers due to an exaggerated shortage.

Vance stated that corporations should not look to foreign labour to replace roles after laying off American employees. He also stated that the H-1B program should benefit the US economy rather than displace American labour.

The statements follow Trump’s executive order signed on September 18. The decision requires the Departments of State, Labour, and Homeland Security to examine whether a business has recently laid off, or intends to lay off, similarly situated US workers when assessing H-1B-related applications and petitions.

The decision also directs the Labour Department’s Wage and Hour Division to examine data from previously filed labour condition applications. The review is meant to evaluate if additional enforcement action against sponsoring employers is warranted.

Trump administration expands H-1B visa oversight

The new executive order is part of the Trump administration’s larger push to strengthen supervision of the H-1B program. The White House claims that the adjustments are intended to discourage companies from utilising the program to replace US workers.

The government has also reaffirmed a separate limitation that requires a $100,000 payment for some H-1B visa petitions involving workers from outside the United States, with limited exceptions. That limitation went into force on September 21, 2026, and will last for 12 months unless it is extended.

Vance has stated that the administration will pursue administrative adjustments rather than waiting for Congress to revamp the H-1B system. He has also cited worries about fraud and enforcement as justifications for deploying executive and administrative powers.

Latest update on H-1B policy

The latest restrictions mean that firms seeking H-1B workers may face increased scrutiny of their hiring methods, especially if they have recently cut their US workforce. The executive order of September 18 clearly urges federal agencies to examine recent or planned layoffs of similarly situated American workers.

The administration believes that the H-1B program should be used for specialised foreign workers who supplement the US workforce. The new measures are meant to increase employer verification and strengthen enforcement of existing program standards.